Health Insurance Articles
Limiting Your Health Insurance Costs While You Are Between Jobs
2010-03-24
The flagging economy and housing bubble bursting has put a great many of Americans out of work, struggling to simply make ends meet while looking for a new job or an entirely new line of work. One thing that many people allow to lapse when they are unemployed is their health insurance coverage, as it is one more bill they can ill-afford. Difficulties arise, however, when they then become ill. With little or no health care coverage, the repayment after a long-term hospital stay or round of drug treatments can be as severe as job loss itself. Here are several ways to keep health insurance costs reasonable.
First, if you've been let go from an employer who carried a health insurance plan, you may be able to take advantage of the COBRA legislation. This allows for employees who have been terminated to continue using the company's health care plan. It is set up to last a period of 18 months and while the premiums must be paid by the former employee, the cost cannot exceed 102 percent of the original. This means that a new health care plan does not have to be sought out and allows for a one and a half year window in which to find new employment. This coverage is not available if the company itself goes out of business, however.
If that is the case, it may be necessary to seek out new private health insurance. This can be a daunting task, as many health insurance quotes seem quite high and may still come with substantial co-payments and a steep deductible. The key is in knowing what to look for. The best option to find a budget-oriented health insurance quote is to look into a self-directed or similar type of health insurance plan. These plans typically feature a smaller amount of annual coverage, but the money can be used at the discretion of the client, rather than being confirmed through a health management consultant. This gives the customer greater control of their own health needs and spending, and allows them to better plan for unexpected events or issues.
Be very leery of any "discount" health plans, however. These will include an almost non-existent premium, which will instead be a "membership fee." These plans come with a card that theoretically access provider care and prescription drugs for a lower price. But often the list of businesses which provide discounted services is extremely short, and any savings are offset by administrative costs and extra charges. If possible, continue under an old employer's health care plan until a new job can be found, or seek out new health care insurance in the form of self-directed or similar plan that allows control.
